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Ghana and the IMF: Policy shifts, economic bailouts and macroeconomic outcomes

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  • Karimu, Suale

Abstract

Ghana has a long history of engagement with the IMF. Successive governments of Ghana have sought economic bailouts from the IMF due to worsening domestic macroeconomic stability. This paper examines Ghana’s historical engagement with the IMF and the associated macroeconomic outcomes, and offers lessons for economic restructuring and growth beyond the bailouts. The paper explores the common patterns of the key macroeconomic variables and possible latent causal effects. The results reveal intermittent and short-term effects of the IMF programs. The bailouts often have a short-term impact on macroeconomic stability and growth, but the effects are unsustainable in the long term, especially after the IMF program ends.

Suggested Citation

  • Karimu, Suale, 2024. "Ghana and the IMF: Policy shifts, economic bailouts and macroeconomic outcomes," Journal of Policy Modeling, Elsevier, vol. 46(6), pages 1146-1164.
    • Handle: RePEc:eee:jpolmo:v:46:y:2024:i:6:p:1146-1164
    DOI: 10.1016/j.jpolmod.2024.07.006
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    More about this item

    Keywords

    IMF bailouts; Macroeconomic stability; Economic restructuring; Ghana; Dynamic factor models;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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